It appears that any small American business not already shut down by Obamacare regulations will be helped along by the banksters.In an apparent effort to front-run official government capital controls, JP Morgan Chase has issued letters to ALL Business account holders notifying them that as of Nov 17th, the bank will limit all cash transactions (including deposits, withdrawals, and ATM usage) to $50,000/month, and will ban all outgoing international bank wires!Bank officials confirmed Wednesday that the new capital controls apply to all business account holders, the bank will stop processing any outgoing international bank wire, and that any monthly cash transactions in excess of the new $50,000 limit will be subject to penalties and fees for each dollar over the $50k cap.

Chase Bank confirmed to Infowars that all business account holders were being subjected to these new regulations. They indicated that customers would have to pay a fee on every dollar withdrawn over the limit. Given that even a relatively small grocery store or restaurant is likely to turnover more than $50k a month in cash payments, this appears to be part of a wider move to shut down businesses who mainly deal in cash. The bottom line is that banks think your money is their money and will do everything in their power to prevent you from withdrawing it.

For those with eyes open to read the handwriting on the wall, it appears the window is rapidly closing on the opportunity to extricate funds from the Fascist USSA system. Got PHYZZ???

“The bottom line is that banks think your money is their money and will do everything in their power to prevent you from withdrawing it.”
– – – – –
Or maybe the bottom line is the banks were TOLD by the government that they must do this.

So Chase after doing the donky work for the FED is to be a “bad bank” that can’t stay afloat?
Such a letter openly invited everyone to leave them. Bad for business. Their house of card collapses. By design.
Large businesses are just out of million or billions. You can’t come back from that. Even if the money supposedly is still there, will a “bad bank” balance get you a loan at any other bank for a credit line of any amount?

And, is this then the bank run even banks were hoarding $100’s for? Free old money, soon to be expired of course. And no-one to change it even for $50’s?

Control, Control, Control. or either they don’t have the Fiat. Or there getting ready for a BANK IN and they don’t want THEIR Fiat leaving.
LMAO I wrote the above before I listened to the video. God I must be learning after all.

@undeRGRound That’s some sexy looking Toilet Roll you have there RGR. I believe they should have put a group pic of the House and Senate on it though. That would have made the ass wiping more satisfying. I don’t believe Benjamin would have approved of his face being on something this fiat, perhaps John Maynard Keynes’ face would have been more appropriate, it doesn’t have to be a US Citizen after all; Barry the Kenyan without a birth certificate (sorry, with a fake birth certificate) can run the country, so putting the father of modern international uber-fiatonomics on it would be appropriate.

Also they could change the country name to United Nations Of Obambia if you’re Chinese and you also don’t like your new world inflationary currency then eat sh*t and die etc… literally.

In other news I heard that Chinese food prices have gone up 3.1% in a Single Month … no wonder they are screaming about the US led inflationary economic suicide that they are also having to contribute to domestically in order to save their exports. What the Fed and Japan are doing is seriously hurting these periphery countries now, and they are getting seriously vocal.

I got some of those new $100 bills today…. I am SO BUMMED… all the pictures I saw showed a gold color… Hell, hold one in your hand and it looks like that damned cupro-nickel color that is on the edges of the phony coins post 1964… Bah! Leave it to the US government to stick to a theme. Paper Gold really is NOT TRUE GOLD!!!! BAH!!!!!

Jeez, it’s actually WORSE than that… gotta be copper-colored… hold it to the light just right and it’s freakin’ GREEN… the color of corroded copper on my car battery terminals!!! Double BAH!!!! …and WTF??? Series 2009 A? 2009?

Hey gang, guess what?
I’m not going to go into a long ‘told you so’ rant. We all know this was going to happen. No surprise here.
Totally predictable.
Bail-ins are probably going to hit here, if not soon, most likely one of the first.
$11 billion in fines, deposit depletions, people fleeing this criminal empire, $24 billion in legal fees over the last 4 years.
Whether the gummint has anything to do with this, Dimon and his JPM Chase Depositor Gulag Goon Squad is closing the doors.
If you ain’t out of the system, please position yourself to exit and leave as little as you can that might be helpd hostage.
This action is completely over the top. following the methods of the terrible, biggest, worst banks in Italy, Spain, Portugal, France and Ireland Remember Banamex is getting ready for some bad action too.

JPM the Dodo in the mine field
If a business is told they can’t sent international wires, that means they could easily be trapped in this La Brea Tar Pit of a TBTF bank
This action cold easily be part of a brokered deal with AG Holder. Circle the FIAT wagons and we’ll go easier on you Jamie. But you are still our bitch

Every single Chase business account owner (share cropper?) should immediately check to see if a regional bank can meet their needs in this regard. If not, then the iron fist of the US Gov will be revealed for what it truly is… desperate. If so, then they should immediately switch to a bank that can meet their needs.

@Ed_B >>>If so, then they should immediately switch to a bank that can meet their needs.
Stuffing the mattress time 🙂 screw the banks, if you can’t bite it then it doesn’t exist. Within a year now is my prediction, ‘it’ is getting really close, as soon as the food stamps are truly cut off the Dawn of the Dead scenario is live. This is where we all prepare ourselves mentally … Cyprus was definitely just a little tester, now the behemoths will pounce on everyone’s funds and use them to bail out the effects of their past, present and future gambling addiction, and something tells me that all the Fed paper in the world will not be able to print a mildly good news story for much longer, all this printing is turning into an obituary.

“I believe they should have put a group pic of the House and Senate on it though.”

Not bad. Or, how about the Keystone Cops or Bozo the Clown? Any of these would be closer to reality than poor old Mr. Franklin. Franklin’s contemporaries would have been shooting long before now… probably during 1873 when silver was demonetized via The Coinage Act of that year.

“Stuffing the mattress time screw the banks, if you can’t bite it then it doesn’t exist.”

That’s fine for individuals but a business cannot function that way unless it is strictly local / cash and carry. It’s a BIG world out there and business HAS to work within that framework, so, yes, these BUSINESS people NEED a bank that can serve their needs. So does everyone who receives a pay-check. Without local banks, what are you gonna do with that slip of paper or that direct deposit? Not much. Besides… it is not the small local banks that are the problem here or even the bigger regional banks. It is strictly the mega-banks that are causing all the problems in banking. They so need to be busted up into multiple smaller banks… OR… allowed to go bankrupt and disappear when poorly run…. like all other businesses. If there is any bailing out to be done, then let it be the depositors who are bailed out and not the knuckleheads who caused these problems in the first place. They can stew in their own juice. lol

@Ed_B
I agree. Something tells me however that when TBTF SHTF that the smaller banks will be forced by fascist govt legislation to adhere to some rules written by TBTF consortiums that will kill their own ability to transfer overseas also. I’m quite sure this Chase move has US Govt written all over it and it is very similar in some ways to the HSBC action in London closing down all embassy accounts IMO, moves that stink to high heaven and are un-precidented. Both London and NYC seem to be preparing to ostracize China and Russia and any other country who decided to throw in their lot with the Shanghai Pact, and it will be either a Hot Military action (false flag triggered of course) or a Cold Shoulder breaking off of relationships between East and West. The interesting thing will be what Europe does, but something tells me the pro-IMF Eurocrats will throw their lot in with the Anglo-American Parasite Empire.

One thing is clear; this is all picking up speed very quickly now, and the Cool Aid Drinking Zombies will start to panic soon and they worry me more than the Bankers on Wall Street.

Yes, it is likely that the TBTF banks will have their tentacles all set to insert into any and all smaller banks that they do not already control, just for this situation. Their typical move will be to do something or cause something to be done by the politicians that damage the banking system, causes a lot of the smaller banks to fail, and then they will graciously offer to step in and “help them out” by acquiring them, usually for pennies on the dollar. They, of course, have LOTS of money and can ride out a difficult time longer than can the smaller banks. Once they have all been snapped up, they will have the problem fixed that caused the smaller banks to fail so that they do not sustain too much damage during this corporate raiding scheme.

I agree that it is likely that there are Gov and Fed fingerprints all over any and all of the banking shenanigans that have occurred or that will occur immediately prior to and during the SHTF. This seems typical of their modus operandi.

The rift between East and West is more difficult to decipher. We are in fact engaged in currency and cyber wars these days and there is some overlap. It is difficult to say what side the Europeans will come down on or whether or not they will remain united as a group. If history is any guide, there IS considerable value in choosing to join the eventual winners in any large-scale struggle. The Germans and the Chinese seem to be making some economic overtures to each other and the Russians have Gazprom to use as a club to whack the Europeans into line. This all may very well boil down to who can best meet each others needs. If so, that puts the Russians in a very strong position regarding economic leadership in Europe. The Europeans MUST have nat gas, and lots of it, and the US probably cannot supply them with all they need. We can supply them with coal, however, so that is something in our favor. I wonder whether the current environmental flap over coal is simply designed to take this card away from the US in this high stakes poker game. China can burn a million tons of coal and there is nary a squeak of protest from the environmental movement but let the US burn a ton of the stuff and they need to have their diapers changed. This is not about the environment but about politics and the “useful idiots” needed to achieve political goals.

A hot war is always possible but perhaps not as likely as it once was unless staged via smaller client states. Neither the US nor the Russians nor the Chinese really want to have a go at the others. The reward for victory would pale to insignificance compared to the possible losses incurred. Better to be the puppet masters, pulling the strings from behind the curtain of plausible deniability.

“… the Anglo-American Parasite Empire.”

An interesting turn of phrase, considering that ALL empires are parasitic. lol

“One thing is clear; this is all picking up speed very quickly now, and the Cool Aid Drinking Zombies will start to panic soon and they worry me more than the Bankers on Wall Street.”

I agree completely. The speed of events is definitely increasing. What once took years to play out is now occurring in months, sometimes even just weeks. These zombies have the numbers and once they have tasted the Kool-Aid (blood?), they will not be deterred from their course. As with all zombies, of course, a round to the forehead settles their issues. 😉

If any country will declare an old bank bill void before anyone gets to exchange theirs for new, which country would that be?
Sure looks like the old bill will be handed out to anyone withdrawing cash. And wheen they’re up, declared void due to “security” issues. They are counterfeited too well. See how many are in circulation at once while they thought they were done collecting most of them. No wonder the people complain about cost push inflation when the cental bankers can tell any difference.

@dwhit I believe the new $100 will be replacing the old ones and when the system collapses only the new $100 bill will be recognized and everyone including other countries that holds the old ones (and Counterfeits) will be shit out of luck. Keep Stacking

The big banks have more money deposits then you can ever imagine. My guess is the excess of 10 to 15 trillion dollars. To bad there not loaning it out to the American people mostly the gov to keep them going buying treasuries. Any way why would anybody put money into a bank????????? There loaning your money out at average 8% interest times 10 because of fractural reserve banking. Can we do the math here? say you deposit 100 the bank can legally lend up to 10 times this amount an that’s a 1000 dollar an also there making more money loaning it out at 8% an giving you 1 to 2 %. When the gov put all the bail out money an quantive easing money the bank are now so rich they could pay off half the worlds government debt all at once.

Dang I recently read that our TBTF banks have something on the order of $2.3 trillion in deposits in excess of loans. They are not loaning these deposits to personal or company borrowers. It is being used to trade the stock market and but treasuries, making a 100% safe yield based on the spread between the interest they pay, maybe .25% and what they earn which might be 1.5% Nice spread, no risk.

http://beforeitsnews.com/economics-and-politics/2013/09/the-banks-are-gearing-up-for-the-collapse-dave-hodges-2456874.html
he Banks Are Gearing Up For The Collapse – Dave Hodges
Are prepared for the coming economic collapse! The banks re getting ready for the coming economic collapse. They want to create a situation that is worse than the great depression. Dave also predicts a banking collapse is around the corner, “There IS a collapse that is coming. The banks have been preparing for it for over a year now. Go back to last year when the Seventh Circuit Court of Appeals ruled that when you deposit your money in a bank, that money belongs TO the bank, and they may do with it what they will.” This isn’t fear mongering, this is reality.

Of course not! The MSM covers the stories that they are TOLD to cover. If it doesn’t fit the agenda of their masters, then it’s just not news. This is why these bastards hate the alternative media so much. The AM is peeing in their soup and they are not used to that kind of abuse. But it sure look good on them, doesn’t it? 😀

No bank, huh? You must be one of those terrorist-patriot-T-party-hooligans that the MSM is always warning everyone about. You probably have more than 3 days worth of food and water on hand and the weapons to defend what you have too. Tsk, tsk. We simply MUST investigate all this dangerous anti-Marxist activity! lol

Indeed. If they do, then it is by government command. If not, then it is likely that Chase bank itself is having problems and is setting the stage for an MF Global moment for their account holders.

These things tend to start out affecting very few. Once it is accepted, the screws WILL be turned until it affects almost everyone. The original US income tax was just such a law. It only applied to those of means and only amounted to a 3% tax. But look at it now. The ugly little porker has grown up and is now a fully grown wart hog of immense proportions. Will this be any different? Maybe… but then again, maybe not.

if you have more than $50,000 to wire transfer (whatever that means in this day and age), I bet you can still arrange it with your bank, its just treated as a special measure, needs to be checked for why, how etc by the PTP.,,,

You can still purchase stuff though surely? I mean, as a business $50,000 is not an awful lot of money?

Has the type of account have any bearing? I mean ‘Classic’ sounds like old faithful, an account that doesn’t do these kind of transaction amounts therefore, its a way for Chase to stop this type of account being used for money laundering.

HSBC anyone?

Any road, I don’t know about America, but I know that for purchases of gold in this country (UK), all records of purchases are recorded just in case of money laundering. That is what THEY say 😉

Geez. Calm down everyone. It is only one tier of the business account, not ALL accounts. If people don’t like it they should upgrade or change bank. The way it should be. How would a bail-in work if everyone can just transfer their balance to another domestic account? Also, the $50k monthly limit is only for CASH… checks and (domestic) wires are still unlimited.
BUT, considering the huge chase customer base, this must be pretty bad news for an economy already suffering from declining money velocity. So in theory, this could actually be negative for inflation and gold/silver. No business-owner will close their chase account and start making international payments in gold (no physical transfers anyhow). If positive for any currency it would be bitcoin.

I would not call anything capital controls unless it originates from government and applies to accounts country-wide. A creeping implementation would only cause people to get alarmed and more money to escape. Capital controls are hardly implemented with a 30 day warning. Lastly… people can of course panic and cause “liquidity problems” no matter what, apparent by the comments to this post.

An alarming headline to say the least. Don’t waste credibility posting this kind of news which have nothing to do with capital controls. The day something really happens and you report it nobody is going to believe you.

@pferd Agreed. SD should have figured out by now that the headline and commentary is factually incorrect and correct it. I mean… they should have verified their interpretation before even posting in the first place (I would).
The worst is that articles like this quickly echoes all over the alternative media and then all the conspiracy theorist accept it as truth without ever confirming. All that was needed was to call Chase (or listen to the Infowars clip where they call Chase) to find out.

widget I had to do something to avoid capital controls imposed several years ago due to the FACTA and FBAR filing requirements. Capital controls have ramped up over the last 5 years. Offshore accounts of over $10,000 must be reported or the holder can have a $100,000 penalty levied against them if they fail to file these forms or even if they make an innocent mistake.
Most foreign banks no longer accept US deposits. Viamat no longer accepts precious metals shipments out of the US. If a person has back taxes they can be denied a US passport (I call that slavery) Taking anything across the border, even a high level debit or prepaid HSA card can be considered a $10,000 movement of funds. We had HSA cards will $10,000 plus balances so that was a danger.
I’ve wired well over $50,000 many times in my dealings with my two Canadian business and real estate holdings. Those are now sold and transferred into PMs.
The steady increase in controls might not be done over a month but the basic ringfencing has been completed in this country.
Now that that the piggies are in the pen, the slaughtering can begin in earnest
BTW I study this subject relentlessly and am of the opinion that we are one black swan from some serious bank action again our savings and investments now that these capital controls are solidly in place. The Poles has 28 billion Euros stolen from their private pension plans to balance the governments debt to GDP ratio to 56%
One need only ask themselves this question
1. Can I move my FIAT, bank accounts or precious metal assets to another country safely?
2. Can I do this without onerous, repetitive and invasive reporting of that movement to Federal agencies?
3. Can I do this without fear of unmitigatable penaties of $100,000 even if I am in complete compliance of the laws?
Question 1 NO. It is very difficult to find a bank to accomplish this and its based on personal experience
Question 2 NO way Jose. If you try I will send yo cookies in jail
Question 3 NO Make one mistake and you are screwed.
I’ve been filing those forms for the last 3-4 years.
In just the last 2 months my former and present CPAs grilled me on my Canadian transactions to make sure I complied with those rules.
3 years in a row I paid an additional $1,500 in accounting fees to comply with those rules and filings by my CPA.
My CPAs cold be hit very hard if they were found to be processing these forms inaccurately. Fines, being put out of business and even jail time are the fates of accountants who try to circumvent those rules.
Those are facts. They real, costly and very irritating.
I am now out of that paradigm and damn glad of it.
I am literally hiding out from the what the government and banksters can do by FIAT-proofing my assets within a PM stash that can’t be found short of water boarding. If it comes to that, the Second Amendment’s real use and purpose will be my first and foremost thought.
Do you get why I post like this and why I respectfully counter your statements?
I believe you are inaccurate in your opinions regarding these subjects, or at least as to how I interpret them.
You are the only one responsible for your financial and personal safety. Please don’t let your guard down in these matters.
Maybe I overreact but having been down a long 40 year road of banking, finance, international dealings and watching the frogs boiling in the pot, I will not accept anything that speaks to some vague safety of my person or assets.
The only safe course is what I create for myself and my family.
In other words, the government is in session and we are all at risk.

Sheesh AGXIIK – makes ya wanna drop out of the system. It is one thing reading a fictional horror story, but another actually watching it play out in real time……and, you speak of Amendments? what are those?

@AGXIIK Our backgrounds are a little different, but we’ve arrived at the same portal. +1 on everything you’ve said.

@widget and others — PEOPLE, THIS IS NOT A DRILL! I REPEAT! THIS IS NOT A DRILL!!!!!! Whatever your level of normalcy bias, if you haven’t taken steps to protect yourselves and your loved ones against the approaching Perfect Storm, the chances of your survival are very LIMITED!!!

I REPEAT!!! THIS IS NOT A DRILL!!!!

Oh… and for those of you who think you will get warning in sufficient time to act at the last second, let me remind you that back in the 90’s I think it was, one night, the Mexican President issued a public statement that all was well with the Mexican Peso and that all the rumors of trouble were unfounded. The very next morning, the Mexican people awoke to discover their net worth had been reduced MASSIVELY… the VERY NEXT MORNING after their President had assured them all was well and their money was SAFE!!!

“The very next morning, the Mexican people awoke to discover their net worth had been reduced MASSIVELY… the VERY NEXT MORNING after their President had assured them all was well and their money was SAFE!!!”

This is VERY typical in Latin American countries. I have heard that there is saying down that way that “no currency is ever devalued until the president says it is perfectly safe”. Those in the upper levels of government always seem to transfer their own personal money into a bank in another country right before this hits, however. Now, is that luck or what? 😉

Considering the financial history of places like Venezuela and Argentina, one would think that gold and silver would be THE preferred form of savings. Those who hold REAL money have zero fear of currency debasement.

“@widget and others — PEOPLE, THIS IS NOT A DRILL! I REPEAT! THIS IS NOT A DRILL!!!!!! Whatever your level of normalcy bias, if you haven’t taken steps to protect yourselves and your loved ones against the approaching Perfect Storm, the chances of your survival are very LIMITED!!!”
@SovereignEconomist
I have no US accounts or residency anymore (or citizenship). enough steps? 🙂

Amendments??? We don’t need no stenking amendments!!
And realistically we don’t That the Founding fathers had to write this Amendment speaks perfectly to the ongoing over reach of any government
If I sometimes sound like some of our screechier, preachier commenters,my opologies are offered, but since Obamacare has crashed down on us like a jack boot, I am going GALT or anything else that removes me from the virtual unreality of gummint.
But no worries, I am stayin’ long and strong here in the good old US of A. The movie is quite an epic. Having a bit part would be just fine with me.

Stopping international wire transfers sure looks like an attempt to control capital.
But the other change, the part about the 50K per statement cycle INCLUDING deposits doesn’t seem to fit. Only thing I can think of is maybe they’re attempting to move people and businesses away from currency transactions into electronic transfers and credit and debit card use that are traceable, and can provide information about these account holder to an interested party. Can’t tell how an account holder received the currency that they’re depositing. Both of these Chase accounts are checking with interest. Maybe Chase is trying to push businesses into non-interest generating accounts to help the bottom line a little bit more, if these same restrictions don’t apply to similar non-interest generating accounts.
“These changes will help us more effectively manage the risks associated with these types of transactions”
Really?
How much risk is there to a bank that accepts a 10K cash deposit? Not much I think, and definitely negligible compared to the risk that these account-holding businesses incur by being a customer of a megabank, with the possibility of bail-in and who-knows-what-else looming.

junkman
This is what I would call herding and nudging the larger account holders, making sure cash transaction are monitored or prohibited so that the electronic digital capital is used more often.
$50,000 is not an accidental number. It’s the same amount as the IRS stated would prevent a person owing or suspected of owing in taxes from getting a passport.
In the case of herding, you start with the largest elements of the herd and then round up the stragglers. The Federal government is using the biggest bank in its arsenal of compliant bankers to do their dirty work.
There is no accident in this Dimon was hauled into AG Holder’s office, threatened with $11 billion in fines for criminal actions. It could have been $20 billion.
In those cloistered chambers deals are done with the devil. Dimon was given his new marching orders. Holder is an unrestrained hit man, part of the government that has not be held accountable for any criminal actions or murders, aka Fast and Furious.

Dimon was told, in no uncertain terms, THAT HE IS HOLDER’S BITCH.
When Holder says jump, Dimon says how high. Dimon can be gotten to.Holder can’t. There are not enough guards to protect him. Working in offices on the 58th floor does not make a good platform for flying lessons.

JPM is now fully under control of this Fascist Stasi-controlled dictatorship.The KLUMMAC MOPE machine is in 8th gear. The GOP is roadkill in the rear view mirror.
Assuming anything less puts any account holder under a serious amount of delusional thinking that can and will be harmful to their well being. JPM is one of the primary conduits for all Fed wires and other wire transfers. Any bank using their systems will also be forced to comply. Dimon is now nothing more than a smelly hollowed out sock puppet that Holder used to wipe his a** before draping it over Dimon’s pin head
If you sup with the Devil, use a long spoon. Dimon’s place at the table has turned him into the coffee boy. He is not much of a student of history. As Stalin once observed when asked how he would deal with the Pope, he replied “How divisions has the Pope”
Dimon has a popgun and it’s empty.

@agxiik
“…In those cloistered chambers deals are done with the devil. Dimon was given his new marching orders.”

I actually am thinking this is a bit more of a probe, for the moment… they want to see how the american banking customers will react. How many will see what’s happening and bail-out by their choice before they are bailed-in without choice? How many customers will respond and react to the pin-prick? What’s the general awareness of the meaning of their action? What will be the response? How much money will be moved where? VS how much will sit unfazed and unaffected? You can bet they are going to watch the customer reactions and reponses with great attention and interest….

They were very tight-lipped about who gave the order, other than to say it came from “the very top” and why the action was taken. The public explanation was simply banker boilerplate BS (B3S) And, while it appeared that just one bank was chosen (thus far) to be the guinea pig. (Although I have anecdotal, but as of yet, unconfirmed reports from friends the Citi is also doing the same thing) Why all the cloak and dagger? Apparently, it also turns out the Mainstream Media, including the financial channels said NOTHING about this.. Right there, that tells you a LOT!

Here’s one useful factoid… from my research, EVERY currency reset (revaluation) has been preceded by the implementation of currency controls of some form or another… (Now, all you Iraqi Dinar sweepstakes holders, go back to sleep. Nothing to see here, move along!)

@Sovereign Economist
Your Pin Prick theory may be true, but how I see it is this may be THE SIGNALto whomever was told to watch for it. Many things
have multiple meanings, and I believe thie could be one of those.
Like when KLUMMAC Speaks…

Sovereign Economist You hit the nail on the head. I completely forgot that currency controls preceed devaluations. Every currency reset or devaluation is preceeded by currency controls The Mexican Peso incident happened around 1982. I lived in San Diego and saw the devastation that hit businesses on both sides of the border. A friend of ours had $300,000 invested in Peso denomiated securities paying well over 20%. His life saving were wrapped up in those investments. The US inflation was arond 12%. His holdings were reduced to 10 cents on the dollar and he was ruined. A business owner I knew had mid 8 figures invested in Mexico. Due to CURRENCY controls, he could not remove his money to the US so he set up currency exchange houses along the San Diego Tijuanr border. He knew what was coming and was able to ‘exchange/launder’ nearly every dime from Mexico before the devaluation hit. The last time I heard anything of his family they were worth well over $100,000,000. We weren’t close but I knew people who were very familiar with him and his family.

We’ve had currency controls mandated by the US government through FACTA and FBAR Any transport of over $10,000 out of the US is subject to currency control through reporting this movement. Severe penalties ensue if this is not done. Most international banks will not accept US accounts due to the reporting required. Anyone not reporting an account of $10,000 or more can be subject the a fine of $100,000. This is currency control.
That Chase is initiating these controls is quite possibly the precursor to much greater ringfencing by other large banks. We should look to this event as the first in a series of steps on greater controls, first implemented by the largest bank of its type in the US, JPM and then into B of A, Morgan Stanley, HSBC, Wells and others.
The biggest recent currency control and then devaluation was the one that occurred in Veneuzuela. This country means something as it has some of the largest oil reserves and is a fairly large economy in South America. Chavez was dying, denied a devaluation was coming and then in Feb 2013, devalued the Bolivar by 47%. Inflation was already in the double digits but this had the effect of forcing price increases 30-50% overnight. A Big Mac now costs $16 in Caracas The black market for dollars went from 6.3 to 1 to 15 to 1. The new president Maduro has denied any further devaluations which usually means that another is coming. Currency controls were draconian prior to the deval in Venezuela with massive expropriation of wealth, nationalization of public companies and the very severe restrictions on paying accounts offshore for due bills incurred by private enterprise
Argentina is another basket case and while I haven’t heard of any recent devaluations by Kirchner, she reported that she would not do so during the rest of her reign, the inflation is so bad that thus far in 2013, the Peso has been hit at least 25% and some estimate more than 50%. Reporting real inflation to the public, even for elected officials, is illegal and subjects the report to jail time.
Nothing to see here, move along.
I’ll be keeping a weather eye out of further currency controls. It also tells me that the story of the 5 day shut down at the National Bank of Panama has legs. Panama is one of the biggest offshoring bank capitals in the Americas

“A friend of ours had $300,000 invested in Peso denomiated securities paying well over 20%. His life saving were wrapped up in those investments. The US inflation was arond 12%. His holdings were reduced to 10 cents on the dollar and he was ruined.”

I remember that. My folks had a good chunk of money invested in Mexico at that time. We got the Wall Street Journal at work and we were encouraged to read it. I skimmed it from time to time and just happened to read a story about Mexicans sending money out of Mexico for “safe keeping” in Nicaragua. Nicaragua? WTF? Those guys were fighting a civil war at the time and Mexicans were sending their money there so it would be safe? That convinced me that Mexico was in dire financial straits. I spoke to my folks about this and urged them to remove their money from Mexico. My Dad was dead set against taking his money out. My Mom did not say much but a few days later, SHE took the money out. A few days later, Mexico’s peso collapsed and anyone who had investments denominated in pesos lost their shirts. Dad was VERY unhappy about “losing all that money”. Mom cured his case of the blues by telling him what she had done. 🙂

“A business owner I knew had mid 8 figures invested in Mexico. Due to CURRENCY controls, he could not remove his money to the US so he set up currency exchange houses along the San Diego Tijuanr border. He knew what was coming and was able to ‘exchange/launder’ nearly every dime from Mexico before the devaluation hit. The last time I heard anything of his family they were worth well over $100,000,000.”

Mid 8 figures would be something around $500,000,000. Are you saying that he lost $400,000,000? 😉

PS It was Mexican President Luis Portillo who claimed, shortly before the end of his reign, that “I will defend the Peso like a dog” The Peso devalued by 90% within months, going to 200 to 1 from 20 to 1. That perro don’t hunt.
Some estimate that he enriched himself by a couple of hundred million dollars before leaving the presidency in 1982
Word of Warning—and we heard this from former Secretary of the Treasury John Snow when he said he supported a strong dollar–and Santa Claus
When this current occupant of the White House comes out and claims he will DEFEND the value of the US dollar, he will do EVERYTHING in his power to maintain a strong dollar and WILL HOLD ANYONE ACCOUNTABLE WHO GOES AGAINST THIS POLICY, rest assured, the dollar is toast. Those statements are the last refuge of a weak, inept leader who plans to exit stage left with his personal bag of loot while the currency goes in the tank.
That is 1000% guaranty if it’s not a 90% devaluation.

RGR I am guessing this new bill is designed to foil the external counterfeiters since the Fed, the greatest counterfeiter of all time doesn’t like the competition.
Also, with hundreds of billions or maybe even trillions of Benjamins floating around the world and trillions is treasuries being sent back to the US throught the Indirect Exchanges, this new bill can be readily identified and help stop the old bills from being shipped back here.
If Ben was alive he would be giddy with all this travel

“The bottom line is that banks think your money is their money and will do everything in their power to prevent you from withdrawing it.”- – – – -Or maybe the bottom line is the banks were TOLD by the government that they must do this.

As I understand it now, once you put your money in the bank, you become a creditor that’s letting the bank use your money for any purpose it wishes. So, I guess in a way, they do think your money is theirs. What a world we live in. LOL! I still like that 2 OZ. Russian coin. Post the picture again when you get a chance.

No worries Ed You know us bankers. A zero here, a zero there, pretty soon you’re talking about real money
I spoke with my local banker. He said this JPM Chase cessation of outgoing international wires has much to do with the new rules in the Dodd Frank law. Regulation E is what I think he told me. It’s a fiasco for all banks who do any international wires.
Under this reg a PERSON sending a wire to another country used to have no control over the wire once sent. It could not be called back and the send was screwed. It also was connected to money laundering. The banker could have clean hands if the sender was completely responsible.
With the new regs, the sender could complain and say the wire was done wrong or something happened that harmed the sender. The bank must now make up that loss. So, if someone sent $100,000 wire for products, services or something else , there is a cooling off period of 48 hours. If the sender was harmed by the transaction, the bank must eat the losses if the sender makes an issue of a bad wire. That means the bank is out $100,000 I am not sure if this applies to business wires but since the regs are fuzzy, banks are loath to take risk and apparently JPM is throwning the baby out with the bathwater. Like my banker said “Do you know how many $15 wire fees it would take to make up for a $100,000 loss’ About 6,700 I thought.
Beyond that the details were not completely known. This is another piece of DF banking regulations that came to light recently. Do not be surprised to see more banks get out of the wire business due to these unintended consequences of a crappy piece of regulation. Whether we tin foil this or see it is a result of poorly crafted legislation, the fact is that funds inside this country will be harder and harder to send outside the US. Maybe someone writing the legislation knew that the government needed means to keep funds in the US or it was just a legal cluster bungle, it is clear that exiting the US with your money is getting harder all the time
The gist of the conversation, aside from the regulations, is that this bank, which no longer using JPM for wires (now using Citibank), is very cautious about sending wires even if their primary conduit wiring bank is Citi. Citi might have to eat a bad wire but the blowback could hit the small local bank too. While this small bank does a good bit of business with foreign wires for personal and business clients, my banker made is clear that the banks are really nervous about these rules.
It is probably safe to say that the new Dodd Frank is making international wires for personal and business purposes so unsafe to the bank that they just don’t want the headache of a potential loss Bankers are like snails. Throw a little salt on them and they bubble away

I’m a little slow and a little late, but I think I now have a theory on what the Chase announcement regarding cash deposit/withdrawal limits is all about…

I got to thinking about that $50,000 cash in/out limit and it kept bugging me. Why the limit on Deposits. Then it hit me…
Remember first, that also paired with this Chase announcement was the nearly simultaneous appearance of the new US $100 notes…. I noticed that some of these new notes were dated Series 2009… so, contrary to what we’ve been told about printing glitches, they’ve had these notes, just waiting for the right moment to put them into circulation.

Now, I was curious. So, in the past few days, I have gone to withdraw/exchange small test amounts of cash from several banks via their tellers and they are offering the new $100 notes exclusively. When I state a preference for the old notes, I am ALWAYS told that there are no more old $100 notes available. This tells me that the banks are, in fact, withdrawing these old ones quietly, and without fanfare, from US circulation and, perhaps quickly at that. Before too long, they could replace most of the US circulation of the old notes with new ones just through the normal cash transits in and out of the banking system.
Now, there is a huge amount of US currency in old notes in offshore hands around the world. But, as they quietly replace the old currency within the US with the new notes, gradually a two-tier system will emerge. Unlike previous iterations of notel evolution, the difference between the old ones and these latest new ones is OBVIOUS at first glance. So, the notes inside and outside the US now become distinct. Given that the Chase announcement limits the cash deposit and withdrawal totals to $50,000 per month, I am surmising that this now provides a way they can limit the repatriation of the old notes back to the US in any huge quantities. So, at the least, repatriating these notes held outside the US would take a long time due to the monthly limitations.

So, now, when it is time, they can simply announce they are giving everyone a small window of time in which to exchange their old notes for new ones, after which they old ones will no longer be honored. Now, they can effectively reduce and limit the repatriation of all old dollar currency holdings from outside the country back into the US and thus limit the inflationary spikes that would result from the sudden massive increase in paper notes sloshing around the economy. Worse, in theory, they could simply repudiate the debt represented by all that offshore currency. But first, they have to have a means of identifying it distinctly and then preventing it’s reappearance within the US borders. Truly a ring fencing fait accompli.

Thoughts?

Please note that, because this thread is so old, people may not see this post. So, it’s in the later posted entitled “The US Dollar: A Run on the Bank” and you should reply to this there so everyone sees the same thread contents. Sorry for the multiple posts but I think this is important and if anyone has posted this, I have not seen it.

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